Sales Promotions Flashcards
Direct inducement that offers extra incentives anywhere along the marketing channel to enhance or accelerate the products movement from producer to consumer
Sales promotions
Sales promotions aimed at members of the distribution channel are called
Trade promotions
Examples of direct inducement
Money
Prizes
Extra products
Gifts
This is designed to change to timing of a purchase or to shift inventory to others in a channel
Sales promotion
Worldwide percentages of advertising, consumer sales promotion, and trade promotion
Advertising 25%
Consumer sales promotion 15%
Trade promotion 60%
3 reasons for the growth of sales promotions
Accountability
Media shifts
Marketplace changes
Accountability (reason for growth of sales promotion)
Pressure of short term sales
Desire to know ROI
Marketplace changes influencing sales promotion (consumer behavior, pricing)
Less loyal, more risk averse Consumer expectations of discounts Battle for market share Parity products Power of retrailer
5 objectives of promotions
Generate trial Encourage repeat purchases Increase brand awareness Build traffic for a retailer Build a brand
Push strategy for sales promotions
Get your products out and into the retailer
Producer -> resellers -> end users
Marketing communications between all
9 types of trade promotions
Slotting allowances Trade deals Premiums & contests Display allowances Co-op advertising Buyback allowances Advertising allowances Push money & spiffs Meetings/conventions
Manufacturer pays retailer for shelf or floor space for a new product
Slotting allowances (trade promotion)
Manufacturer offers retailer short term discounts or other dollar inducements
Retailers usually pass the savings on to consumers through sale prices
Trade deals
trade promotion
Similar to slotting allowances but display instead of shelf space
Manufacturer pays retailer to make room for and set up displays
Ex. Dewalt in a Lowe’s
Display allowances
Trade promotions
Manufacturer agrees to buyback old product that hasn’t been sold
Often used for new products
Reduces risk for retailer
Buyback allowances
trade promotions
Manufacturer gives retailer either percentage off of purchases or a flat fee with the intent that the retailer will use the $$ to advertise the products
Advertising allowances
Trade promotion
Manufacturer reimburses retailers a % of advertising costs for advertising their products
Co-op advertising
Trade promotions
Cash payments given to sales staff for reaching specific sales goals or pushing certain products
Push money/Spiffs
Trade promotions